In this paper, we investigated impact of corporate cash holdings and financial constraints on investment-cash flow sensitivity.In this regard, we studied and collected data of 130 listed companies in Tehran Stock Exchange for years 2002-2011. In this research, we used Whited Wu and Kaplan-Zingles indexes and payout ratio as measures of financial constraints. Results of this research showed a positive relationship between capital expenditure and cash flow and also unconstrained firms have higher investment-cash flow sensitivity than constrained firms. Other results showed that the interaction of cash holdings on investment-cash flow sensitivity is negative. In addition, we found that financially constrained firms have significantly higher impact of corporate cash holdings on investment-cash flow sensitivity than unconstrained firms.
Haghighat, H., & Zargar Fioji, Y. (2014). The Impact of Corporate Cash Holdings and Financial Constraints
on Investment-Cash Flow Sensitivity. Applied Research in Financial Reporting, 2(2), 149-174.
MLA
Hamid Haghighat; Yaghoob Zargar Fioji. "The Impact of Corporate Cash Holdings and Financial Constraints
on Investment-Cash Flow Sensitivity". Applied Research in Financial Reporting, 2, 2, 2014, 149-174.
HARVARD
Haghighat, H., Zargar Fioji, Y. (2014). 'The Impact of Corporate Cash Holdings and Financial Constraints
on Investment-Cash Flow Sensitivity', Applied Research in Financial Reporting, 2(2), pp. 149-174.
VANCOUVER
Haghighat, H., Zargar Fioji, Y. The Impact of Corporate Cash Holdings and Financial Constraints
on Investment-Cash Flow Sensitivity. Applied Research in Financial Reporting, 2014; 2(2): 149-174.
